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dangina [55]
3 years ago
5

Elegance Bath Products, Inc. (EBP) makes a variety of ceramic sinks and tubs. EBP has just developed a line of sinks and tubs ma

de from a mixture of glass and ceramic. The sinks sell for $150 each and have variable costs of $80. The tubs sell for $600 and have variable cost of $450. The glass and ceramic sinks and tubs require the use of specialized molding equipment. The specialized molding equipment has 4,050 hours of capacity per year. A sink uses an average of 2 hours of specialized molding equipment time; a tub uses an average of 5 hours of specialized molding equipment time.Assume that EBP can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should EBP produce?a.1,000b.500c.410d.675e.zero
Business
1 answer:
Arlecino [84]3 years ago
7 0

Answer:

C) 410 tubs

Explanation:

the contribution margin for sinks is $70 (= $150 - $80) and the contribution margin for tubs is $150 (= $600 - $450).

the molding equipment has 4,050 hours of capacity per year, so it can produce either 2,025 sinks or 810 tubs.

we can determine what product is more profitable if we determine a contribution margin per molding equipment usage ratio:

  • sink = $70 / 2 hours = $35 per hour
  • tub = $150 / 5 hours = $30 per hour

It is more profitable to produce sinks than tubs, but we can sell only 1,000 sinks per year, so even after we product the 1,000 sinks we will have spare molding equipment capacity which we can use to produce tubs.

The spare molding equipment capacity after producing sinks = 4,050 total hours - 2,000 hours used to produce sinks = 2,050 spare molding hours

We can produce 410 tubs (= 2,050 molding hours / 5 hours per tub)

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In a recent year Bonita Industries had net income of $130000, interest expense of $50000, and income tax expense of $21000. What
denis-greek [22]

Answer:

b. 4.02

Explanation:

Time interest earned is actually tells us how many times it's interest is the company earning so that formula for times interest earned is

Earnings before income and tax/Interest expense.

So we have to add interest expense and tax expense back to net income.

130,000+50,000+21,000=201,000

201,000/50,000=4.02

4 0
3 years ago
An important part of obtaining venture capital funding is going through ________ , which refers to the process of investigating
geniusboy [140]

Answer:

Due-diligence

Explanation:

Due diligence is the process of inspection by the venture capitalist to determine whether to invest in any company or not. In due diligence they gauge the potential of success of company and potential profitability. Due diligence process involves asking question to obtain important information to verification of  feasibility of business opportunity. The question is primarily involved around date from financial reports, legal aspects, any intellectual property possess, the assets and liability of company.

Since given in question key claims of business plan is being verified, therefore due diligence process is being followed in venture capital funding

5 0
3 years ago
Ernesto owns a house painting company. Total sales for the past year were $75,000. His bills for running the business were $30,0
pentagon [3]

Answer:

Accounting profit = $45,000

Economic profit = $5,000

Explanation:

The computation of accounting profit and economic profit is shown below:-

Accounting profit = Sales - External expenses

= $75,000 - $30,000

= $45,000

Economic profit = Accounting profit - Implicit cost

= $45,000 - $40,000

= $5,000

Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive

7 0
3 years ago
Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As aresult, smokers who live in Wyoming start pu
fomenos

Answer:

a. People respond to incentives.

Explanation:

Assuming the state of Wyoming passes a law that increases the tax on cigarettes thereby causing smokers who live in Wyoming to start purchasing their cigarettes in surrounding states.

Consequently, an increase in the tax on cigarettes altered the behavior of the smokers in Wyoming, it made them to purchase from neighboring states.

This illustrates or reflect the fact that people respond to incentives.

6 0
4 years ago
What limits are placed on the government's power to tax?​
riadik2000 [5.3K]
The U.S. taxing power, while very broad, has important limitations. First, direct taxes must be apportioned, a very difficult requirement. Second, duties, imposts, and excises must be uniform—an easy-to-meet standard, but one which, if ignored, can be fatal to a statute.


P.S. I hope this helps
6 0
3 years ago
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